2% Seller Concession Max on Investment Loans?

[Denis Ponder]

Good morning,

My lender told me there is a 2% max on seller concessions for an investment loan.  Did we miscommunicate?  Or is that accurate?

Typically I make my offers with seller concessions to help with closing costs and buying down the interest rate.  Is that only an option on a primary residence?  Or did I misunderstand her?  Do I need to shop for other options?  Thanks for any help you can provide.

[Caleb Brown]

That is accurate. If it is owner occupied it's different. So if the property is 100K the seller can only pay 2K in closing costs. Outside of that it'd be price adjustments. Keep in mind too if you drop the price to 98K then you'd have to adjust the closing costs, it's a pain :)